Stymied by rising input and energy costs and a demand dip arising from a slowdown in real estate, UltraTech Cement, an Aditya Birla group company, announced a 5.4% growth in its profit before interest and taxes (PBIT) at Rs 903.7 crore for the quarter ended March 2011. Revenue during the period grew by 6.8%.
Net profit for the quarter stood at Rs 726.7 crore.
“During the quarter variable cost rose by 14% mainly on account of the substantial increase in input and energy cost,” a company statement said.
Ultratech amalgamated with Samruddhi Cement in July 2010, and the comparable numbers for the same quarter last year show that the revenue growth stood at 6.8% as it rose from Rs 4,205 crore in the quarter ended March 2010 to Rs 4,490 crore in March 2011.
For the full financial year the company saw a decline in revenue from Rs 13,442 crore in 2009-10 to R13,210 in 2010-11.
Ultratech expects the industry to grow at 8.5% in the coming months, but feels that the price environment will remain challenging and margins will be under pressure as a result of surplus capacity.
The company also announced that it plans to incur capital expenditure of around Rs 11,000 crore over the next three years while setting up additional clinkerisation plants at Chhattisgarh and Karnataka.